The New Landscape of Digital Literacy

How workers’ uneven digital skills affect economic mobility and business competitiveness, and what policymakers can do about it.

BY AMANDA BERGSON-SHILCOCK MAY 2020

A THE NEW LANDSCAPE OF DIGITAL LITERACY CAPSULE SUMMARY: Exciting new findings about workers’ digital literacy

The Covid-19 pandemic has thrown a stark spotlight on need for digital skills among a wide swath of the American workforce. But even before the pandemic, the US labor market reflected a growing demand for workers across industries to have strong digital skills. This report uses data from a rigorously designed international assessment to analyze workers’ current level of digital skills, providing a breakdown of how skills differ among workers in major industries and occupations as well as demographic categories. Next, it provides a short summary of recommendations for how policymakers and business leaders can invest in upskilling to ensure that all workers have the resilience needed to respond to the continuing transformation of jobs in the US labor market, and to acquire new digital skills as necessary. This report is a companion to Digital Skills for an Equitable Recovery, which provides more detailed policy recommendations and related background.

www.nationalskillscoalition.org

B THE NEW LANDSCAPE OF DIGITAL LITERACY TABLE OF CONTENTS

A rapidly changing economic environment is driving demand for digital skills...... 2 Gaining a big-picture perspective on building a digitally-resilient workforce...... 3 Today’s reality: Nearly one-third of U.S. workers lack digital skills...... 4 Is the glass half full or half empty? Understanding fragmented knowledge...... 5 Digital skill gaps occur across industries and occupations...... 6 Construction, transportation, and storage industry sectors face biggest gap...... 6 Businesses are responding to digital skill development needs among their workforce...... 7 There is wide variation in digital skills across occupations...... 8 Digital skill gaps have consequences for businesses’ and workers’ economic competitiveness...... 10 Digital skills and earnings: Good news and bad news...... 10 Small and mid-sized businesses face greater skill gaps...... 11 Many workers with digital skill gaps are supervisors...... 11 Workers who lack digital skills nevertheless need to use them on the job...... 12 Many workers want to upskill...... 12 Workers with low skills get less on-the-job training...... 14 Digital skill gaps occur among all demographic groups...... 15 Younger workers are not immune to digital skill gaps...... 15 More men are falling behind...... 15 A plurality of workers with digital skill gaps are white...... 16 Racial equity gaps persist in digital skills too...... 16 Workers with limited digital skills also tend to lack formal education...... 17 A complex picture for immigrants and English learners...... 18 Disability: a lack of data hinders understanding of digital skill gaps...... 18 Parents are more likely to have digital skill gaps...... 19 Conclusion: Using this data for advocacy...... 20 Endnotes...... 21

1 THE NEW LANDSCAPE OF DIGITAL LITERACY For businesses to flourish in this rapidly transforming environment, they need reliable access to skilled workers, and strong, responsive public policies that facilitate upskilling for their incumbent workforce.

A rapidly changing economic environment is In addition, a recent report from the Brookings Institution driving demand for digital skills documented the increasing digitization of American jobs across a diverse array of 545 occupations.6 Jobs across the United States increasingly require digital literacy skills. This is not limited to workers in the informa- Using US Department of Labor O*NET data, Brookings tion technology field or those with college degrees; even researchers drew on two variables to inform their calcula- entry-level workers in agriculture, healthcare, and hospi- tions, writing that they chose these as “the most relevant tality are now required to effectively use technology to do measures of the overall digital tenor of occupations.”7 their jobs. For example, Kentucky Fried Chicken now Researchers added that the first variable, “knowledge– trains workers on food safety using virtual reality gog- computer and electronics,” was chosen because it cap- gles,1 while agribusiness giant Taylor Farms is training tures the overall computer knowledge required by a job. human workers to collaborate with robots in packing veg- The second variable, “work activity–interacting with com- etables.2 Many companies have recently beefed up their puters” was chosen because it quantifies the degree to remote work expectations and processes, whether in which computers are core to the occupation’s work activ- response to the Covid-19 pandemic, a natural disaster, or ity.8 Even occupations that are not necessarily thought of other business imperatives.3 Telehealth in particular has as requiring digital skills saw large jumps in their digitiza- seen an enormous surge, with one major Washington tion scores (calculated using the above variables) State healthcare provider reporting increases of ten to between 2002 and 2016, per the Brookings analysis. fifteen times the normal number of “virtual visits” in just For businesses to flourish in this rapidly transforming the first month of the pandemic.4 environment, they need reliable access to skilled workers, In this rapidly evolving context, research from the Urban and strong, responsive public policies that facilitate Institute affirms the growing urgency of foundational dig- upskilling for their incumbent workforce. For workers to ital skills for all workers, including those in frontline, thrive, they need access to timely and accessible upskill- essential roles such as home health aides and janitors.5 ing opportunities, including those that allow them to build

2 THE NEW LANDSCAPE OF DIGITAL LITERACY foundational digital skills as well as acquiring more workers in rural communities, as well as others who may advanced competencies. And in the wake of the pan- not always be able to access in-person learning opportu- demic, both workers and businesses need those public nities. The first is Western Governors University (WGU), a policies and learning opportunities to include the flexibil- fully online, accredited nonprofit higher education institu- ity to be adapted, when appropriate, to incorporate tion. Launched by a bipartisan alliance of Western-state high-quality virtual or remote upskilling options. governors nearly two decades ago, WGU focuses on competency based instruction rather than a “seat time” Governors and other state policymakers have begun to model. Today WGU serves 121,000 adult students11 with recognize the technology-driven changes taking place an average age of 37; three-quarters of them are work- across their labor markets. In the past several years, ing.12 The rapid growth of WGU illustrates the heavy numerous states have launched Future of Work task forces demand for its type of learning model among a wide and similar efforts to understand how best to prepare busi- range of workers and students. nesses and their workers for the current and future transformation of their industries, including growing demands The second example comes from California, where the for digital skills. Among the states leading the way are state’s newest community college, Calbright, launched in Indiana, Washington, New Jersey, and California.9 2019 as an online-only institution meant to serve the eight million adult Golden State residents who are “stranded” The need for digital skills is also gaining urgency in other in low-wage work or otherwise unable to access tradi- arenas. To date, forty-three states have set ambitious tional upskilling pathways.13 While Calbright has only just goals for postsecondary credential attainment. This enrolled its first round of 450 students, observers have entails setting a target for the percentage of state resi- already noted that there are potential challenges in using dents who should attain such credentials by a given an online-only format to target learners who may have 10 deadline (typically 2025). For many individuals—espe- struggled in their previous attempts at education.14 cially those who are working adults, parents, and/or living in rural communities—digital skills are a vital “threshold Research from the Urban Institute suggests that technol- competency” needed in order to access the online or ogy and digital literacy training are a crucial component blended learning opportunities they will need in order to of support for any community college students taking complete postsecondary credentials. online courses.15 However, researchers also caution that technology should not be “the tail wagging the dog,” and The Covid-19 pandemic has significantly magnified the urge stakeholders to start with learners’ needs and goals degree to which workers who have not yet passed this in mind so that adoption of digital technology is a goal- first digital competency threshold can face negative rip- driven rather an product-driven approach.16 ple effects. For example, workers may have difficulty using remote tools newly required by their employer, assisting their children with online learning, or navigating the very public systems designed to help them access education or other assistance. Gaining a big-picture perspective on building a digitally-resilient workforce In addition, both now and over the longer term, people without foundational digital skills may struggle to advance Given these fast moving developments in both workforce in their careers, or have difficulty holding on to their development and postsecondary attainment, many lead- existing jobs as their roles evolve to demand greater ers are eager to gain a bird’s-eye view of the current land- digital fluency. scape to inform their decisionmaking going forward. This report provides policymakers, business leaders, and Even before the pandemic, the importance of founda- advocates with the big-picture perspective and hard data tional digital skills in equipping workers to pursue further they will need as they work to foster a digitally skilled and education and training opportunities was evident. Two resilient workforce.17 It does so by providing a snapshot of examples highlight the particular urgency of this issue for America’s workers current digital skills. Knowing the

3 THE NEW LANDSCAPE OF DIGITAL LITERACY assets and barriers faced by today’s workers will help leaders to identify the most urgent priorities for action—from NEARLY ONE-THIRD OF AMERICA’S WORKERS LACK DIGITAL SKILLS industry-specific as well as demographic perspectives.

This report draws on data from the Organization for Economic Cooperation and Development (OECD) Survey of Adult Skills, also known as the PIAAC, to describe the digital literacy skills of workers ages 16-64 who are currently employed.18 Crucially, the focus is not on workers’ ability to use a particular software program or navigate a proprietary system. Rather, the PIAAC measures a worker’s overall ability to engage in “Problem-Solving in Technology-Rich Environments,” by assessing such skills as being able to navigate a website, find and evaluate relevant content and submit or communicate necessary data.

Currently employed US workers ages 16-64. Today’s reality: Nearly one-third of U.S. workers Source: OECD Survey of Adult Skills (PIAAC) 2012-14. lack digital skills Across all industries, data show that nearly one-third (31 n Proficient digital skills:21 People at this level would percent) of workers lack digital skills. This number typically struggle with tasks that require the use of includes the 13 percent of overall workers who have no both generic and specific technology applications. For digital skills and another 18 percent who have limited example, a person might not be able to complete a skills. An additional 35 percent have achieved a baseline task involving with the use of a new type of online level of proficiency in their digital skills, and the final 33 form, and the need to navigate across multiple pages percent of workers have advanced skills. and applications to answer the test question. This task may have multiple steps, and may require the use of More context about each of these categories is provided tools (such as the “sort” function) to solve the problem. below. The person may have to identify the goal themselves, n No digital skills:19 People with no digital skills failed to and engage in higher-level reasoning to solve the meet one or more of the three baseline criteria to even problem. take the full digital skills assessment: 1) prior computer n Advanced digital skills:22 At this level, a person might use, 2) willingness to take the computer-based assess- have to make use of an online form that they are ment, or 3) ability to complete four out of six very basic encountering for the first time. In doing so, they might computer tasks, such as using a mouse or highlighting have to define for themselves the goal of the problem text on screen. they are solving, and use inferential reasoning in solv- n Limited digital skills:20 People with limited digital ing the problem. They might need to navigate across skills can complete only very simple digital tasks that different online pages and applications, carry out mul- have a generic interface and just a few steps. As an tiple steps of a task, and evaluate the relevance of a set example, people at this level would have a difficult time of items to discard distractors. sorting email responses to an event invitation into pre-existing folders to keep track of who can and cannot attend an event.

4 THE NEW LANDSCAPE OF DIGITAL LITERACY IS THE GLASS HALF FULL OR HALF EMPTY? UNDERSTANDING FRAGMENTED KNOWLEDGE

It may seem surprising that in this day and age some Workers with fragmented knowledge may be adept at nav- workers have few or no digital skills. It is important to note igating certain digital tasks they perform often in their daily that many of these workers may have fragmented knowl- lives, yet also held back from advancing in their careers edge: That is, they may be comfortable using a mobile due to lack of digital problem-solving skills like those mea- phone to text a photo, but not be familiar with how to sured by the PIAAC. Policymakers and advocates seeking operate a mouse or upload a job application. to help these workers upskill should be careful not to underestimate their ingenuity and expertise.3 This is particularly true for individuals who do not own a desktop or laptop computer. Data from the US Census In particular, leaders should ensure that workers have a Bureau indicates that 23 percent of US households fall voice in identifying what skill-building opportunities they into this category.1 need, what support is necessary to ensure their success, and how their employers can most effectively be engaged Fragmented knowledge is also more likely to occur in upskilling conversations. (Labor-management partner- among people who have smartphone-only internet ships are one proven model for this type of collaborative access—that is, they can get online using their phones, program design.4) but don’t have broadband internet access at home. (This group partially overlaps with but is not identical to the Understanding the phenomenon of fragmented knowl- previous group mentioned above.) A 2019 survey from edge can help leaders avoid making assumptions about the nonpartisan Pew Research Center showed that peo- who lacks digital skills and why, and which interventions ple of color are more likely to have smartphone-only can help people make bridges between the skills they internet access, with 23 percent of Black respondents have and the skills they need. and 25 percent of Latino respondents falling into this category, compared to just 12 percent of whites.2

1 “Computer and internet use in the United States: 2016,” US Census Bureau, 2018, https://www.census.gov/content/dam/Census/library/publica- tions/2018/acs/ACS-39.pdf 2 Source: https://www.pewresearch.org/internet/2019/06/13/mobile-technology-and-home-broadband-2019/. Data on Asian/Pacific Islanders and other racial/ethnic groups was not provided in the Pew study. Additionally, it should be noted that among overall adults surveyed by Pew who lack home broadband internet access, 27 percent cited cost (of either the broadband service or a computer) as the most important reason for their lack of access. 3 See, for example, “Digital Diaspora: How immigrants are capitalizing on today’s technology,” Welcoming Center for New Pennsylvanians, November 2012, https://welcomingcenter.org/wp-content/uploads/2016/08/Digital-Diaspora-FINAL-report-Nov-2012-1.pdf. 4 “The benefits of labor-management partnerships,” Labor-Management Project, 2014, https://www.labormanagementinitiatives.org/wp-content/ uploads/sites/7/2014/11/Benefits-of-LM-Partnership-Cross-Industry-Lit-Review.pdf

5 THE NEW LANDSCAPE OF DIGITAL LITERACY Digital skill gaps occur across industries and The construction sector is far from the only one facing occupations significant skills gaps. More than one-third of workers in numerous other sectors have few or no digital skills. This Construction, transportation, and storage industry includes retail, wholesale, and auto repair, where 37 per- sectors face biggest gap cent of workers have limited or no digital skills; hospitality Every industry in America faces significant digital skill and other services (36 percent); manufacturing (35 per- gaps in its workforce. Nevertheless, there are variations cent); and the combined category of administrative and among different industry sectors when it comes to this support services and arts, entertainment, and recreation issue. For example, the construction, transportation, and (35 percent). storage sectors have the highest proportion of workers without digital skills; fully half of all workers (50 percent) In some cases, digital skill development can be a chick- in these sectors lack skills. While it might seem as though en-or-the-egg question: Did the worker develop the skills these industries simply don’t have much need for digital because their job requires it, or did the industry hire work- skills, in fact that is not the case. For example, the ers who already had the skills they needed? Regardless Brookings Institution analysis mentioned above found of the direction of that causality, the industries that have that both construction managers and construction labor- slightly fewer workers who lack digital skills include sev- ers saw dramatic increases in their “digitization scores” eral sectors that have more thoroughly incorporated digi- between 2002 and 2016.23 tal technologies over the past few decades. Still, even

Percentage of Percentage of Combined percentage Selected industries24 workers with no workers with limited of workers with limited digital skills digital skills or no skills*

Construction, transportation and storage 22% 28% 50%

Retail, wholesale, and auto repair 14% 23% 37%

Hospitality and other services 18% 18% 36%

Manufacturing 16% 19% 35%

Administrative and support services; arts, 13% 22% 35% entertainment and recreation

Health and social work 12% 21% 33%

Finance, insurance, and real estate (FIRE) 6% 14% 19%*

Education 5% 11% 15%*

*NOTE: Numbers may not sum due to rounding.

6 THE NEW LANDSCAPE OF DIGITAL LITERACY within those industries, there are startling gaps. For example, a full one-third (33 percent) of workers in America’s robust health and social work sector lack digital skills—a particularly concerning finding given the A full one-third (33 percent) of workers in widespread use of electronic health records and related America’s robust health and social work computer tools across the sector, as well as the recent sector lack digital skills—a particularly increase in demand for telehealth services due to the concerning finding given the widespread use Covid-19 pandemic. of electronic health records and related Health workers’ skill gaps also have broad geographic computer tools across the sector, as well as implications, as the sector is robustly represented in nearly the recent increase in demand for telehealth every US state and local economy. While the health sector services due to the Covid-19 pandemic. in general is relatively recession proof and is expected to continue growing as more and more baby boomers reach retirement, localities that have fewer skilled workers will be less desirable choices for healthcare industry expansion and location of ancillary services. Digital skill gaps thus have significant economic development as well as work- major ripple effects; WIOA-funded educators serve force development repercussions. approximately 1.4 million adult learners each year through adult basic education, high school equivalency, and Continuing down the list of sectors, nearly one in five English language classes.30 workers (19 percent) in the financial, insurance, and real estate (or FIRE) sector have few or no digital skills. Again, Businesses are responding to digital skill this is especially concerning given the prevalence of development needs among their workforce required digital tools in these industries.25 As described The real life effects of the industry numbers detailed above later in this report, numerous workers with limited digital are reflected in numerous recent examples of American skills are nevertheless called upon to use computers reg- companies moving to tackle digital skills gaps among their ularly on the job. The costs of their skill gaps are significant, serving as an invisible drag on productivity as work- workforce. For example, Nationwide Insurance is investing 31 ers develop sometimes elaborate and time-consuming $160 million in boosting digital skills for its 28,000 workers. coping mechanisms to cover for their lack of skills.26 Another insurance company, Guardian Life, is launching a new effort to provide workers with advanced digital skills.32 Finally, nearly one in six US workers in the education sec- Meanwhile, Accenture’s broad-based Inclusive Future of tor (15 percent) also lack digital skills. This is perhaps sur- Work initiative aims to help workers whose jobs may be prising, given the substantial growth in digital technolo- affected by automation.33 And Eat ‘n’ Park Restaurants has gies for educational contexts in recent years, but it may piloted a ten-week online customer service curriculum to reflect in part the decentralized and uneven access to upskill and retain workers.34 professional development for many workers in the educa- 27 tion field. In particular, educators in part-time roles or The wide ranging impact of digital skill gaps across working as adjunct or contract workers may lack institu- industries has multiple implications for policymakers tional support, including for professional development in and business leaders. It brings home the fact that policy building their digital skills.28 solutions must be multi-sectoral—this is not an issue The percentage of such workers can be substantial in that can be cordoned off into a single industry sector or some sub-sectors of the education field. For example, a cluster. It vividly illustrates that workers who struggle in full 78 percent of the adult educators funded under the one industry because they lack key digital skills cannot federal Workforce Innovation and Opportunity Act are simply jump to a new industry where such skills are part-time teachers.29 Any gaps in teachers’ skills can have unnecessary.

7 THE NEW LANDSCAPE OF DIGITAL LITERACY At the same time, the variations between sectors—both There is wide variation in digital skills across numerically, in terms of percentage of workers affected; occupations and substantively, in terms of the specific causes and In addition to looking at workers’ skills in particular indus- consequences of their skill gaps—point to the need for tries, we can also look across industries at workers in solutions that are responsive to individual sectors’ spe- similar occupations. Viewed in this light, there are enor- cific contexts. The digital skills needed by grocery store mous variations in digital skill levels. The occupational workers using a customized app to select items for a cus- category with the greatest portion of low-skilled workers tomer order and respond to that customer are different is plant and machine operators and assemblers. Nearly from those needed by a greenhouse worker using data two-thirds (63 percent) of workers in this category have from sensors to make adjustments as part of precision limited or no digital skills. Workers in these occupations agriculture.35 include people who operate industrial and agricultural machinery and equipment; drive and operate trains and To this end, policymakers should prioritize digital skill other motor vehicles; or assemble parts. building strategies that incorporate employer input in their design, and use contextualized learning models that Other occupational categories that have significant num- help workers see the real life implications of their new bers of workers with digital skill gaps include the com- digital skills and apply them during the learning process. bined grouping of skilled agricultural and fishery workers

Percentage of Combined Percentage of workers with percentage of Selected occupations36 workers with no limited digital workers with digital skills skills limited or no skills*

Plant and machine operators and 33% 29% 63% assemblers

Skilled agricultural and fishery workers; 32% 21% 53% elementary occupations

Craft and related trades workers 21% 27% 48%

Service workers and shop and market 16% 24% 40% sales workers

Clerks 6% 19% 24%

Technicians and associate professionals 8% 15% 24%

Professionals 4% 9% 13%

*NOTE: Numbers may not sum due to rounding.

8 THE NEW LANDSCAPE OF DIGITAL LITERACY Policymakers should prioritize digital skill-building strategies that incorporate employer input in their design, and use contextualized learning models that help workers see the real life implications of their new digital skills.

and elementary occupations. More than half (53 percent) encompasses a very wide variety of jobs, including welding; of workers in these occupations have limited or no digital maintaining and repairing industrial machinery; making pre- skills. Workers in these occupations are responsible for cision instruments and jewelry; and many more. growing and harvesting crops; producing animal prod- ucts; forestry, fishery; cleaning and janitorial work; deliv- The next occupational category is service workers and ery services; freight handling; and entry-level jobs in min- sales workers. A full 40 percent of these workers have ing, construction, and manufacturing. limited or no digital skills. This is notable given the excep- tionally rapid pace of technological change among indus- It is important to note that while many of these workers tries that employ many of these workers. For example, may need digital skills to carry out their job duties, even cosmetics giant L’Oreal has recently provided digital more are required to use online scheduling tools, upskilling opportunities for 14,000 employees,40 while mobile-accessible HR and payroll systems, or customized Walmart has rolled out a suite of digital apps that frontline corporate apps in order to maintain their employment. For workers are expected to use for activities such as pro- example, at one major casino, 50,000 of the company’s cessing inventory.41 Similarly, the previously mentioned 58,000 employees do not have a company-issued e-mail Brookings Institution analysis shows that the retail indus- address.37 Instead, they rely on a customized app for key try as a whole saw a sizeable jump from 2002 to 2016 in work-related information—an especially important con- the amount of digital skills and knowledge demanded of nection for frontline staff in janitorial or other roles that its workforce.42 are traditionally “back of house.”38 Similarly, a supply-chain and logistics company also relies on a customized mobile There are somewhat lower but still troubling levels of digi- app to reach delivery drivers and the rest of their 11,000 tal skill gaps among workers in the remaining occupational 43 employees in the field—a tool that proved especially use- categories: Nearly a quarter (24 percent) of clerks, an ful for rapid response during a recent hurricane.39 equal number (24 percent) of technicians and associate professionals, and 13 percent of professionals nevertheless Craft and related trades workers are next on the list, with have limited or no digital skills. While these numbers nearly half (48 percent) of workers in those occupations are lower than other occupations, they are particularly having limited or no digital skills. This occupational category concerning because of the near-universal requirements for

9 THE NEW LANDSCAPE OF DIGITAL LITERACY using digital tools in these fields. Workers in professional or The PIAAC data divides workers into five levels of earn- quasi-professional occupations must not only use general ings, known as quintiles. The majority of workers with no digital tools such as e-mail and spreadsheets, but also spe- digital skills are clustered into the bottom two quintiles. cific tools such as advanced software customized for their Specifically, 25 percent of workers with no digital skills work. Because of the collaboration-intensive nature of are in the lowest earnings quintile, and another 32 per- knowledge work, workers in these occupations who have cent are in the second-lowest quintile. At the other end of limited digital skills can serve as an accidental productivity the spectrum, just 10 percent of workers with no digital bottleneck, hampering their colleagues and their compa- skills made it into the top earnings quintile. nies from achieving full capacity. Numbers are similar among workers with limited digital skills. In particular, 21 percent of workers with limited skills are in the lowest earning quintile, and another 26 percent are in the second-lowest quintile. In contrast, just 10 per- Digital skill gaps have consequences for cent of workers with limited skills are earning in the top businesses’ and workers’ economic quintile. competitiveness There is a bad news/good news component to this find- Digital skills and earnings: Good news and bad news ing, because the US has traditionally had a closer con- The economic impact felt by workers with limited or no nection between basic skills (such as literacy) and earn- 44 digital skills is vividly clear in the data on earnings: The ings than other industrialized countries. The bad news is lower a person’s digital skills, the lower their earnings that so many workers’ skills are low. The good news is tend to be. that as people’s skills improve, they can expect to com- mand higher wages in the US labor market.

ROUGHLY HALF OF WORKERS WITH LIMITED OR NO DIGITAL SKILLS HAVE LOW EARNINGS

Numbers may not sum to 100 due to rounding. Currently employed US workers ages 16-64. Source: OECD Survey of Adult Skills (PIAAC) 2012-14.

10 THE NEW LANDSCAPE OF DIGITAL LITERACY WORKERS WITH LIMITED OR NO DIGITAL SKILLS ARE SLIGHTLY MORE LIKELY TO WORK FOR SMALL BUSINESSES Many workers who have digital skill gaps are

nonetheless working in jobs that regularly call upon them to use such skills.

important engine for new job creation,45 these skill gaps are especially concerning.

Notably, SMEs are more likely to depend on strong public policies to help them upskill their current workforce. Where very large employers may be able to launch an in-house upskilling initiative entirely on their own, SMEs often look to industry associations and chambers of com- merce, industry sector partnerships, or other qualified intermediary organizations to assist them in developing Among currently employed workers ages 16-64. Size of employer refers to location at which 46 person works. Source: OECD Survey of Adult Skills (PIAAC) 2012-14. their talent pipeline.

Many workers with digital skill gaps are supervisors Small and mid-sized businesses face greater skill gaps Skill gaps have impacts that stretch beyond individual A majority of workers with no digital skills are employed employees. Data show that a surprising number of work- in small and mid-sized enterprises, often abbreviated ers with digital skill gaps are actually supervising other SMEs. Workers with limited digital skills are also slightly employees. A full one-third (33 percent) of workers with over represented in SMEs. Given that small businesses limited digital skills are supervising others, as are one- employ tens of millions of Americans and represent an fifth (20 percent) of workers with no digital skills. These

LOW DIGITAL SKILLS AREN’T JUST A PROBLEM FOR WORKERS THEMSELVES; MANY ARE ALSO SUPERVISING OTHERS

■ ■

Currently employed US workers ages 16-64. Source: OECD Survey of Adult Skills (PIAAC) 2012-14.

11 THE NEW LANDSCAPE OF DIGITAL LITERACY MANY WORKERS WHO LACK DIGITAL LITERACY HAVE JOBS THAT REQUIRE SUBSTANTIVE COMPUTER SKILLS

■ ■

Currently employed US workers ages 16-64. Source: OECD Survey of Adult Skills (PIAAC) 2012-14.

workers’ skill gaps thus have ripple effects that can family members to help them complete tasks, continuing dampen productivity and delay adoption of more efficient to use older, more cumbersome paper-based systems for work practices across their companies.47 work tasks when digital tools are available, and delaying or avoiding tasks that require digital skills. Depending on how many people a worker is supervising, these ripple effects can reach numerous fellow employ- Many workers want to upskill ees. Notably, among workers with limited or no digital Data from the PIAAC and other sources make clear that skills who are supervisors, approximately one in six are many workers with skill gaps are aware of their gaps and supervising eleven or more employees. eager to remedy them. While there is no PIAAC data that Workers who lack digital skills nevertheless need to specifically shows workers’ enrollment in digital skill build- use them on the job ing classes, there is a close correlation between a worker’s Many workers who have digital skill gaps are nonetheless digital skill gaps and their skill gaps in traditional literacy 49 working in jobs that regularly call upon them to use such and numeracy. For that reason, analyzing the steps work- skills. More than one in three workers with no digital skills ers are taking to pursue general upskilling (and the barriers (38 percent) say that their current job requires either they face in doing so) may be helpful in understanding the “moderate” or “complex” computer skills, as do 43 per- factors that at play in digital skill building.50 cent of individuals with limited computer skills. PIAAC data show that workers’ general upskilling efforts Without upskilling support, these workers may flounder. include enrolling in formal degree or certificate programs, Previous qualitative research has shown that workers in participating in open or distance education classes, these situations can spend significant time and energy attending seminars or workshops, taking other courses or trying to hide or compensate for their skill gaps.48 private lessons, and enrolling in basic skills or high school This includes repeatedly depending on colleagues or equivalency classes.

12 THE NEW LANDSCAPE OF DIGITAL LITERACY While a significant chunk of workers with limited or no digital skills are pursuing upskilling, their peers with higher-level digital skills are even more likely to do so.

Specific findings include: n Ten percent (10 percent) of workers with no digital participation within the past year. Six percent of work- skills and 18 percent of those with limited skills reported ers with no digital skills said they had done so, as did that they had studied for a formal degree or certifi- five percent of those with limited digital skills, nine per- cate (on any topic) within the past 12 months.51 Their cent of those with proficient skills, and 13 percent of peers who have higher-level digital skills were some- those with advanced skills. what more likely to report doing so: 25 percent of those with proficient skills and 28 percent of those with n A subset of workers in the PIAAC survey were also advanced skills said they had studied for a formal asked an additional question: whether they had partici- degree or certificate. pated in a basic skills or high school equivalency class within the past year. This question was only asked of n Looking at participation in open or distance educa- workers who had less than a high school diploma, or tion classes over the past 12 months, eight percent of had finished a high school diploma within the past year, workers with no digital skills reported participating. or who had foreign education below the level of an The number rises to 14 percent of those with limited associate degree. Within this subset, roughly one in ten skills, 21 percent of those with proficient skills, and 26 workers reported participating in such a class.52 percent of those with advanced skills. Overall, the trend is clear: While a significant chunk of n When it comes to participating in lighter-touch learning workers with limited or no digital skills are pursuing upskill- activities such as seminars or workshops, nearly one- ing, their peers with higher-level digital skills are even more fifth (18 percent) of workers with no digital skills reported likely to do so. There are multiple factors that could be driv- participating within the past year. In contrast, 26 percent ing this trend. As described elsewhere in this report, work- of workers with limited skills, 38 percent of those with ers with low digital skills are also more likely to have low proficient skills, and 47 percent of those with advanced earnings, which makes it more difficult to pay for tuition or skills had participated in such activities. fees for classes. They are also more likely to work for small n In the less common category of other classes or pri- businesses, which may be less likely to offer tuition assis- vate lessons, smaller percentages of workers reported tance or other paid training for their employees.53

13 THE NEW LANDSCAPE OF DIGITAL LITERACY Because workers’ ability to participate in upskilling is Workers with low skills get less on-the-job training highly dependent on whether they have the time and While it might seem that workers with limited skills would 54 money to do so, employer support can be vital in facili- be more likely to need—and to receive—on-the-job train- tating workers’ participation. For example, businesses ing, in fact the data show that they are less likely to can provide paid release time and/or tuition assistance receive such training compared to their peers. Specifically, for workers who are pursuing education; offer classes on the PIAAC survey asked workers whether they had par- site; and tie skill gains to wage increases and promotion ticipated in on-the-job training within the past 12 months. opportunities. In addition, employers that participate in Nearly one in three (30 percent) workers with no digital industry sector partnerships or labor-management part- skills had done so, as had 41 percent of workers with lim- nerships can create economies of scale with fellow busi- ited digital skills. nesses to support upskilling for workers in similar roles across companies, within a given industry.55 However, these numbers rose substantially to half (52 percent) of workers with proficient skills, and a full 58 per- Finally, it should be noted that because workers’ digital cent of workers with advanced skills. This data reflects skill levels are strongly correlated with their general liter- the reality that employer-provided training is often geared acy and numeracy skills, those who struggle with tech- toward workers who have greater skill levels to begin nology may also struggle with the academic skills needed with. Notably, research suggests that supporting skill to gain entry to a degree or other educational program. In gains among adults with lower skill levels (in this case, the case of distance learning, workers who lack digital literacy) has a more powerful effect on per-capita Gross skills may not be able to use the digital tools necessary to Domestic Product and labor productivity, compared to access those learning opportunities, thus dampening skill gains among adults who were already at a higher their participation in online classes and similar activities. level to begin with.56

WORKERS WITH FEWER DIGITAL SKILLS ARE LESS LIKELY TO HAVE HAD RECENT ON-THE-JOB TRAINING (IN ANY JOB)

60 50 40 30 20 10 0

Currently employed US workers ages 16-64. Source: OECD Survey of Adult Skills (PIAAC) 2012-14.

14 THE NEW LANDSCAPE OF DIGITAL LITERACY YOUNGER WORKERS ARE NOT IMMUNE TO DIGITAL SKILL GAPS

Currently employed US workers ages 16-64. Source: OECD Survey of Adult Skills (PIAAC) 2012-14.

Digital skill gaps occur among quick TikTok video, but stymied when it comes to using all demographic groups a spreadsheet. Younger workers are not immune to digital skill gaps Second, younger workers are more likely to be people of color. As discussed elsewhere in this brief and in the While it might seem that younger workers would be uni- accompanying Applying a Racial Equity Lens to Digital formly digitally literate, the data in fact show that a signif- Literacy fact sheet, workers of color face a variety of addi- icant portion of workers with limited or no digital skills are tional barriers to digital skill building. Finally, younger in their late teens through early 30s. Specifically, fully a workers may face uneven access to upskilling opportuni- quarter (24 percent) of all US workers with no digital skills ties, especially if they are employed in occupations or are between the ages of 16-34, and 29 percent of those industries that tend to provide fewer employer-based with limited skills are between 16-34. training opportunities and less support for workers wish- Perhaps more worryingly, younger Americans are also ing to pursue additional education. behind their international peers. Looking at a broader set of PIAAC data that includes all adults (not just workers) More men are falling behind ages 16-34, the US scored lower in digital skills than 17 out Men are disproportionately likely to have no digital liter- of 18 peer countries. Top countries included Finland, Japan, acy skills: 61 percent of workers who score at the lowest and Norway, with only Poland falling below the US.57 skill level are men, significantly outstripping the average percentage of males in this dataset (52 percent). These stark gaps in younger workers’ skills likely reflect Interestingly, men are also slightly more concentrated at several distinct issues: First, the challenge of fragmented the other end of the scale, comprising 54 percent of those knowledge. (See earlier textbox.) Younger workers are not with advanced digital literacy skills. immune to the reality faced by their older peers, in which they develop only those skills that they regularly use. These gender differences may reflect a variety of factors, Thus, a young person might be confident in making a including the reality that men who work in entry-level

15 THE NEW LANDSCAPE OF DIGITAL LITERACY jobs are more likely to be doing physical labor that does workers digital literacy skill gaps across all races illus- not require technology skills, while women are in frontline trates the need for wide-ranging solutions that are roles are disproportionately likely to be in service-sector responsive to the full range of workers’ demographic and jobs that require at least modest digital literacy. personal characteristics. Understanding the role that race and ethnicity play in people’s opportunities for upskilling Perhaps more notable from an upskilling perspective is can help to ensure that workers of any background have the fact that other federal data shows us that women are an equitable chance to build their skills and advance in far likelier to enroll in the kinds of adult education pro- their careers. grams that currently represent the primary federal investment in foundational digital skills.58 This suggests that Racial equity gaps persist in digital skills too digital upskilling efforts may need to use a gender lens A wealth of prior research has illustrated the wide-rang- when designing programming in order to ensure that ing effects of structural racism in hampering racially equi- workers of all backgrounds are able to access and suc- table outcomes, including in education and workforce ceed in upskilling opportunities. development.59 Not surprisingly, these effects also spill over into the areas of access to digital technology and A plurality of workers with digital skill gaps are opportunities for digital skill building. As noted earlier, white people of color are more likely to lack broadband internet Workers with digital skill gaps exist in every racial and access at home, more likely to lack a desktop or laptop ethnic category. White workers represent a plurality of computer at home, and otherwise face greater difficulties individuals who lack such skills: 44 percent of workers obtaining the technology often used to build digital liter- with no digital skills are white, as are 50 percent of those acy skills.60 with limited skills. Given these realities, it is perhaps not surprising that While digital equity issues do disproportionately burden workers of color are over represented among workers workers of color (see below), the sheer scale of America’s with limited digital skills. In particular, Black workers are

A PLURALITY OF WORKERS WITH DIGITAL SKILL GAPS ARE WHITE

Currently employed US workers ages 16-64. Source: OECD Survey of Adult Skills (PIAAC) 2012-14.

16 THE NEW LANDSCAPE OF DIGITAL LITERACY MOST WORKERS WITH DIGITAL SKILL GAPS HAVE A HIGH SCHOOL EDUCATION OR LESS

Currently employed US workers ages 16-64. Source: OECD Survey of Adult Skills (PIAAC) 2012-14.

12 percent of all workers, but 15 percent of those with no Second, workers with less education may also be more digital skills and 21 percent of those with limited skills. likely to have attended K-12 schools that were under Latino workers (who may be of any race) are 14 percent of resourced, and/or to live in low-income households. Both all workers, but a full 35 percent of those with no digital of these circumstances can cause people to have less skills, and 20 percent of those with limited skills. exposure to digital tools and skill-building opportunities.

The picture for Asian American/Pacific Islander workers Finally, because the digital skills assessment is conducted is more mixed. These workers represent five percent of all in English, workers who have limited English skills are workers, four percent of those with no digital skills, and more likely to struggle with the test. Because of US immi- seven percent of those with limited skills.61 (Unfortunately, gration patterns, individuals with limited English are also detailed data on other workers of color—such as Native more likely to have limited formal education. (This issue is Americans or multi-racial individuals—is not available further discussed in the below section on immigrant due to low sample size.) workers and those with limited English.)

Workers with limited digital skills also tend to lack As the chart illustrates, workers with less than a high formal education school education comprise just 10 percent of all workers Overall, workers’ educational attainment is highly cor- in this dataset, but are 33 percent of those with no digital related with their digital skills attainment. In particular, skills and 12 percent of those with limited skills. workers who have a high school diploma or less make up Workers whose highest level of attainment is a high sizeable majorities of those who have few or no digital school credential (whether diploma or equivalent) make skills. There are several factors that likely influence this up 40 percent of all workers in the dataset, 47 percent of phenomenon. First, workers with less education are more those with no digital skills, and 53 percent of those with likely to also struggle with basic literacy, making it harder limited skills. for them to understand and accurately complete the digital skills assessment, which requires test takers to read Workers who have attained a postsecondary certificate of instructions in order to carry out tasks. some kind (whether from a college or a trade school) are

17 THE NEW LANDSCAPE OF DIGITAL LITERACY nine percent of total workers in this dataset, six percent of that immigrants are often creative and entrepreneurial those with no digital skills, and 12 percent of those with users of digital technology.64 However, like their US-born limited skills. colleagues, they face digital skill gaps, and may possess fragmented knowledge. Workers whose highest level of attainment is an associate degree are 10 percent of total workers, just 4 percent In addition, because of the legal and social factors of those with no skills, and nine percent of those with that shape who has the chance to migrate to the US, limited skills. immigrants are disproportionately likely to lack formal education,65 which as described above is associated with Finally, it should be noted that while workers with bache- fewer digital skills. lor or graduate degrees tend to have better digital skills, they still comprise roughly one in ten workers with no While immigrants represent 15 percent of all workers in digital skills, and a similar proportion of those with limited this dataset, they are 38 percent of those with no digital skills. (Overall, workers with bachelor or graduate degrees skills and 23 percent of those with limited digital skills. are 32 percent of workers in the PIAAC dataset.) Similarly, workers who have limited English proficiency, A complex picture for immigrants and English many but not all of whom are immigrants,66 also have dig- learners ital skill gaps. These individuals represent 14 percent of all Nationwide, one in six US workers is an immigrant.62 workers in this dataset, but 43 percent of those with no Roughly 75 percent of immigrant adults in the US digital skills and 21 percent of those with limited skills.67 It have authorized legal status, while the remainder are is important to note that because the digital skills undocumented.63 Previous research has demonstrated assessment took place in English, these numbers may

DISABILITY: A LACK OF DATA HINDERS UNDERSTANDING OF DIGITAL SKILL GAPS

The PIAAC dataset collects very limited information about individuals’ disability status, including general questions about whether the person has difficulty seeing or hearing as well as whether they have ever been formally diagnosed with a learning disability. This analysis looked at the final question on learning disabilities; 7 percent of overall workers in the dataset answered yes to this question. Given the prevalence of disability among workers,1 the lack of more robust data collection on disability as part of the PIAAC is a significant disappointment.

Without better data, it is impossible to know how disability intersects with digital skills. For example, some people living with disabilities may be more experienced with digital tools because they use them to navigate the world on a regular basis. Alternatively, some people with disabilities might have fewer digital skills because of barriers they face in access- ing educational and other skill-building opportunities, low income, or other factors.

Lack of data on workers with disabilities also prevents an analysis of how various demographic factors intersect—such as how the experiences of people of color who have disabilities may differ from those of white people with disabilities.

The limited data that exists in the PIAAC survey suggests a very small correlation between workers with diagnosed learning disabilities and lack of digital skills. However, the statistical differences are within the margin of error. Again, much more information is needed.

1 See: https://www.bls.gov/news.release/pdf/disabl.pdf

18 THE NEW LANDSCAPE OF DIGITAL LITERACY underestimate workers’ technological proficiency if they were instead working in their home language. However, because English usage is so dominant in US If workers with low skills are workplaces, it is important to know how workers fare when they are functioning in that language. disproportionately likely to have minor children living at home, Parents are more likely to have digital skill gaps upskilling these workers has the A somewhat surprising finding of the study is that work- potential to benefit the next ers who have children are more likely to lack digital skills. In particular, parents represent 66 percent of total generation as well as workers workers in this data, but 75 percent of those with no skills themselves. and 78 percent of those with limited skills.

In contrast, parents are 66 percent of those with proficient This finding suggests that further research on these skills and only 55 percent of those with advanced skills. The analysis completed for this report did not examine the issues would be valuable. In particular, if workers with low age of workers’ children, and the PIAAC dataset did not skills are disproportionately likely to have minor children specifically collect information on if children were living at living at home, upskilling these workers has the potential home. Without more information, it is impossible to know to benefit the next generation as well as workers them- exactly what is driving this correlation—for example, selves. Recent efforts to expand two-generation initia- whether workers with children may spend increased time tives that target parents and children together illustrate on parenting and caregiving responsibilities, leaving less the value of considering workers’ lives more holistically time available for digital skill building. when making upskilling investments.68

19 THE NEW LANDSCAPE OF DIGITAL LITERACY Conclusion: Using this data for advocacy n Investing in new Digital Literacy Upskilling grants to expand access to high-quality digital skills instruction Policymakers, business leaders, educators, and work- that meets industry and worker needs. These dedi- force advocates can use the information provided in this cated investments are necessary to ensure sufficient brief to inform their efforts to upskill America’s workers attention is paid to digital skill building in the face of and equip employers with the skilled workforce they need. numerous competing priorities. Grants should support In particular, because existing education models may not states in developing and implementing programs that equip workers with all of the skills they need to succeed embed digital literacy skills as part of broader occupa- in the digital economy, policymakers should support pub- tional skills training, integrated education and training, lic-private training partnerships, invest dedicated funds in and other accelerated learning strategies. digital upskilling efforts, and identify incentives to advance short-term and nontraditional training and edu- • At the state level, policymakers can introduce state- cation programs that respond to jobseeker and employer level legislation or an administrative policy mirror- needs for rapid upskilling in the wake of the pandemic ing the federal-facing Digital Literacy Upskilling and beyond. Community colleges, technical schools, grants, but should also provide resources and tech- apprenticeships, and other training programs offer the nical assistance for adult education programs that education and skills necessary to thrive in 21st century serve workers and learners. These programs are an careers. Scaling up these types of programs could prompt important existing avenue for digital skill building. employers to shift to a nimbler skills or competency-based n Incentivizing private investment in digital skills train- hiring system and increase learner access to digital and ing, instruction and upskilling opportunities for incum- technology skills training. This approach would also help bent workers by expanding the scope of existing tax employers fill open positions more efficiently, benefiting policies like the Work Opportunity Tax Credit (WOTC) the entire U.S. economy. to allow employers to provide essential upskilling oppor- Key steps that policymakers should take include: tunities, both in response to the Covid-19 pandemic and over the longer term. n Embedding digital literacy and problem-solving skills as allowable or required activities under existing work- More detailed recommendations on how state and fed- force development, adult education, and higher edu- eral policy can support digital upskilling are available in cation policies Digital Skills for an Equitable Recovery.

20 THE NEW LANDSCAPE OF DIGITAL LITERACY Endnotes 1 Learn more: https://www.qsrmagazine.com/technology/virtual-reali- 19 In the PIAAC data, this group represents those with no PS-TRE score. ty-your-restaurants-next-favorite-tool 20 In the PIAAC data, this group represents those who scored below 2 Learn more: https://www.pri.org/stories/2019-10-17/how-immi- Level 1 in PS-TRE. grant-workers-are-preparing-automation-agriculture 21 In the PIAAC data, this group represents those who scored at Level 1 3 For more on the shift to remote work, see: https://www.theatlantic. in PS-TRE. com/ideas/archive/2020/03/coronavirus-creating-huge-stressful-ex- 22 In the PIAAC data, this group represents those who scored at Level 2 periment-working-home/607945/ and https://www.gallup.com/ or Level 3 in PS-TRE. workplace/292334/covid-strategies-policies-world-largest-companies.aspx. 23 See Table 3 of the Brookings report: https://www.brookings.edu/ wp-content/uploads/2017/11/mpp_2017nov15_digitalization_full_re- 4 Learn more: https://www.cio.com/article/3534499/how-the-covid- port.pdf. In another example, one 2017 survey of Maryland construc- 19-pandemic-is-reshaping-healthcare-with-technology.html tion contractors found that 80 percent were using mobile technology 5 Learn more: https://www.urban.org/sites/default/files/publica- in their businesses. See: https://www.gma-cpa.com/technolo- tion/100843/foundational_digital_skills_for_career_progress_2.pdf gy-blog/why-one-fifth-of-maryland-construction-contractors-are- not-using-mobile-technology. 6 Learn more: https://www.brookings.edu/wp-content/uploads/2017/11/mpp_2017nov15_digitalization_full_report.pdf 24 Industries not shown due to low sample size include agriculture; mining; utilities and waste management; professional, scientific and 7 Ibid. technical activities; information and communications; public 8 Ibid. administration and defense. 9 Learn more about these efforts: https://www.aspeninstitute.org/blog- 25 The rapid increase in digital skill demands for the finance and posts/creating-a-future-of-work-commission/ insurance fields are illustrated in Digitalization and the American Workforce, Brookings Institution, 2017: https://www.brookings.edu/ 10 Learn more about state postsecondary credential attainment goals wp-content/uploads/2017/11/mpp_2017nov15_digitalization_full_re- and view state-by-state data using the Lumina Foundation’s online port.pdf tool: http://strongernation.luminafoundation.org/report/2020/#nation 26 Earlier qualitative interviews conducted by National Skills Coalition 11 Learn more about WGU’s student base: https://www.wgu.edu/about/ for another project shed light on what these coping mechanisms students-graduates.html#close include. Workers must repeatedly rely on colleagues to assist them, 12 Additional background on WGU: https://www.chronicle.com/article/ bring work home to request help from family members, and spend Here-s-How-Western-Governors/243492 substantial extra time compensating for or attempting to hide their skill gaps. 13 Learn more about Calbright: https://edsource.org/2019/californias-new-online-community-college-opens-after-months-of-plan- 27 Lack of access to professional development opportunities among ning/618006 contingent and adjunct faculty is discussed by Gordon Edenfield, “A Utilization-Focused Evaluation of a Community College Adjunct 14 These challenges are not limited to a lack of digital skills. Researcher Faculty Professional Development Program,” (Old Dominion Sandy Baum of the Urban Institute noted, “We know that students University, 2010), viewable at https://digitalcommons.odu.edu/cgi/ who do not have strong study skills, who do not have strong viewcontent.cgi?article=1107&context=efl_etds personal support networks are particularly vulnerable, in the sense that they tend not to do as well in purely online coursework as they 28 Existing challenges on this front have been magnified by the would if they were in a classroom,” as quoted in “Students worry as Covid-19 pandemic, as described by Emma Dill, Karin Fischer, Beth California’s online community college confronts offline woes,” Cal McMurtrie, and Beckie Supiano, “As Coronavirus Spreads, the Matters, January 29, 2020, https://calmatters.org/education/ Decision to Move Classes Online Is the First Step. What Comes higher-education/2020/01/students-worry-as-californias-on- Next?” (Chronicle of Higher Education, March 6, 2020), viewable at: line-community-college-confronts-offline-woes/ https://www.chronicle.com/article/As-Coronavi- rus-Spreads-the/248200 15 Amanda Briggs, Semhar Gebrekristos, and Shayne Spaulding, “Supporting Community College Learners Online,” Urban Institute, 29 Source: US Department of Education, WIOA Title II National March 2020. Viewable at: https://www.urban.org/research/ Reporting System, Program Year 2018-19. publication/supporting-community-college-learners-online 30 Ibid. 16 Ibid. 31 Learn more: https://www.hrdive.com/news/nationwide-announc- 17 As defined by the DigitalUS coalition, of which National Skills es-160m-employee-digital-literacy-training/570786/ Coalition is a member, digital resilience “encompasses the aware- 32 Learn more: http://iireporter.com/inside-guardian-lifes-talent-trans- ness, skills, agility, and confidence that enable individuals to adapt to formation-with-svp-bob-thompson/ changing digital skill demands and become empowered users and learners of new technologies. Digital resilience improves our 33 Learn more: https://www.constructforstl.org/wp-content/uploads/ capacity to problem-solve and upskill using technology and navigate pdfs/futurework.PDF digital transformations, and it is vital for individuals, our economy, 34 Learn more: https://assets.aspeninstitute.org/content/up- and society.” Learn more: https://digitalus.org/our-work/ loads/2019/08/Harnessing-Digital-Technology-for-Frontline-Work- 18 This data is collected under the auspices of the OECD across er-Mobility.pdf?_ga=2.40890144.382505603.1580658178- numerous industrialized countries. Only U.S. data was used in this 526887200.1572292248 analysis. Learn more in the “Where this data comes from” text box elsewhere in this report.

21 THE NEW LANDSCAPE OF DIGITAL LITERACY 35 Learn more about the skills demanded by precision agriculture: 52 Unfortunately, small sample size makes it impossible to report https://www.growingproduce.com/vegetables/where-will-we-find- numbers broken out by level of digital literacy. tech-savvy-farm-workers/ 53 In addition, depending on the type of upskilling made available to 36 Occupations not shown due to low sample size include legislators, them, workers with limited digital skills may be less able to senior officials and managers; armed forces. participate. For example, if their employer is offering only optional online training that is to be completed in their off-time using 37 Learn more: https://www.theemployeeapp.com/case-studies/ personal electronic devices, workers who lack home broadband caesars-entertainment-corporation/ internet or personal computers may find it difficult to participate. 38 Ibid. 54 Foundational Skills in the Service Sector, National Skills Coalition, 39 Learn more: https://3h0vk03mo4xr3fastt1k9b5z-wpengine. 2017. netdna-ssl.com/wp-content/uploads/2019/10/EmployeeApp-NFI.pdf 55 See local examples of industry partnerships from the National Fund 40 Learn more: https://www.loreal-finance.com/en/annual-report-2016/ for Workforce Solutions: https://nationalfund.org/regional-collabora- digital-culture tives/. Learn more about how state policymakers can support 41 Learn more: https://corporate.walmart.com/newsroom/innova- industry sector partnerships in NSC’s Sector Partnership Policy tion/20180919/walmarts-custom-apps-are-enabling-a-workplace-re- Toolkit: https://www.nationalskillscoalition.org/resources/publica- fresh tions/file/Final-Sector-Partnership-Policy-Toolkit-1.pdf 42 See Table 4: https://www.brookings.edu/wp-content/up- 56 “Literacy and growth: Policy implications of new evidence from loads/2017/11/mpp_2017nov15_digitalization_full_report.pdf PIAAC,” Guido Schwerdt, Simon Wiedehold, and T. Scott Murray (2018) https://static1.squarespace.com/static/51bb- 43 As previously noted, a handful of occupational categories are not 74b8e4b0139570ddf020/t/5c1928fecd- included due to low sample size: Legislators, senior officials and 8366551dc39797/1545152766907/Final+1-page+summaries.pdf managers; and members of the armed forces. 57 “America’s Skills Challenge: Millennials and the Future,” Madeline J. 44 Eric A. Hanushek, Guido Schwerdt, Simon Wiederhold, and Ludger Goodman, Anita M. Sands, Richard J. Coley, Educational Testing Woessmann, “Returns to Skills Around the World: Evidence From Service, 2015, https://www.ets.org/s/research/30079/asc-millenni- PIAAC,” (Stanford, CA: Hoover Institution, 2013), viewable at: https:// als-and-the-future.pdf. Specific PIAAC PS-TRE international www.hoover.org/sites/default/files/13114_-_hanushek_schwerdt_ comparison chart viewable at: https://www.ets.org/s/re- wiederhold_and_woessmann_-_returns_to_skills_around_the_ search/30079/millennials.html. world_-_evidence_from_piaac.pdf 58 Source: US Department of Education, WIOA Title II National 45 See specific statistics on this question in this US Small Business Reporting System, Program Year 2017-18. Administration fact sheet: https://www.sba.gov/sites/default/files/ advocacy/2018-Small-Business-Profiles-US.pdf. SBA statistics refer to 59 The Roadmap for Racial Equity: An Imperative for Workforce businesses with fewer than 500 employees. Development Advocates (National Skills Coalition, 2019.) Viewable at: https://www.nationalskillscoalition.org/news/blog/nscs-new-report-ex- 46 More information on how policies can support industry sector plores-the-imperative-of-racial-equity-in-workforce-development partnerships is available on the NSC website under Federal Policy: https://www.nationalskillscoalition.org/federal-policy/sector-partner- 60 Learn more: https://www.pewresearch.org/internet/2019/06/13/ ships and State Policy: https://www.nationalskillscoalition.org/ mobile-technology-and-home-broadband-2019/. Also see Sam state-policy/sector-partnerships Gustin, “Systemic Racial Discrimination Worsens the US Digital Divide, Study Says,” Vice, December 14, 2016, https://motherboard. 47 For example, one key informant interviewed as part of NSC’s earlier vice.com/en_us/article/aek85p/systemic-racial-discrimination-wors- research described this example: A supervisor in an upskill retail ens-the-us-digital-divide-study-says. store was unable to access the instructions and policies posted on the corporate intranet site hosted on an in-store tablet computer. Her 61 These numbers are primarily an artifact of US immigration policy. lack of skills meant that she did not use the intranet’s many Compared to Americans overall, Asian Americans and Pacific resources to train her employees on company policies for merchan- Islanders (AAPIs) are more likely to be immigrants, and many have dise display and other tasks, nor did she direct workers to access the arrived in the US under visa categories that select for wealthier and intranet themselves. As a result, an entire crew of workers spent time more highly educated individuals. Importantly, these factors are not re-doing tasks after other supervisors noticed their lack of alignment equal across all Asian American and Pacific Islander groups; for with corporate policy. example, individuals who arrived from Southeast Asian countries via the refugee resettlement process may have had fewer opportunities 48 Foundational Skills in the Service Sector, National Skills Coalition, 2017. for formal education in their home countries. Unfortunately, low 49 Ibid. sample size does not allow the data in this report to be disaggregat- ed by AAPI sub-group. 50 Key informants interviewed by NSC suggest that there may also be additional digital-specific considerations that can help or hinder 62 Jynnah Radford and Luis Noe-Bustamante, “Facts on U.S. Immigrants: upskilling, such as a worker’s self-perception of their technological Statistical portrait of the foreign-born population in the United proficiency or the degree of intimidation they feel when presented States,” Pew Research Center Hispanic Trends, June 3, 2019, http:// with digital tools. This is an important area for further research and www.pewhispanic.org/2018/09/14/facts-on-u-s-immigrants/#fb-key- exploration. charts-origin. 51 For this question and other variables reported in this section, the 63 PIAAC data does not include specifics about immigration status. In percentages consist of those workers who had participated in a general, other data show that approximately three-quarters of given learning activity at any time in the past 12 months, including immigrants in the US have legally authorized status and the those currently participating. remaining 25 percent are undocumented. See: Jeanne Batalova,

22 THE NEW LANDSCAPE OF DIGITAL LITERACY Brittany Blizzard, and Jessica Bolter “Frequently Requested Statistics individuals are 9 percent and 28 percent, respectively. See: https:// on Immigrants and Immigration in the United States,” Migration www.migrationpolicy.org/data/state-profiles/state/demographics/ Policy Institute, February 14, 2020, https://www.migrationpolicy.org/ US. However, the educational attainment of new immigrants to the article/frequently-requested-statistics-immigrants-and-immigra- US is generally increasing; see also: https://www.pewresearch.org/ tion-united-states#Unauthorized%20Immigrants fact-tank/2018/09/14/education-levels-of-u-s-immigrants-are-on- the-rise/ 64 “Digital Diaspora: How immigrants are capitalizing on today’s technology,” Welcoming Center for New Pennsylvanians, November 66 English learners also include some Puerto Ricans. Puerto Rico is a 2012, https://welcomingcenter.org/wp-content/uploads/2016/08/ US territory, and individuals born on the island, many of whom speak Digital-Diaspora-FINAL-report-Nov-2012-1.pdf. English as a second language, are US citizens by birth. 65 Migration Policy Institute analysis of US Census Bureau 2017 data 67 Data in this section reflects workers who speak English less than shows that among immigrants aged 25 and older, 28 percent have “very well,” a standard US Census measure for English skills. less than a high school education and another 23 percent have a 68 Learn more about the 2-generation approach here: https://ascend. high school diploma or equivalent. Comparable numbers for US-born aspeninstitute.org/two-generation/what-is-2gen/

23 THE NEW LANDSCAPE OF DIGITAL LITERACY WHERE THIS DATA COMES FROM

Data in this publication comes from the Survey of Adult Skills, conducted under the auspices of the Organization for Economic Cooperation and Development. The survey, also known as the Program for the International Assessment of Adult Competencies, or PIAAC, is administered by National Center for Education Statistics of the Institute for Education Sciences at the U.S. Department of Education.

The survey gathered data from a representative sample of U.S. adults in 2012 and 2014. (Data used in this analysis combine information from both years for greater statistical precision.) The survey includes a background demographic questionnaire that is administered in English or Spanish, followed by a cognitive assessment in English measuring the three domains of literacy, numeracy, and “problem-solving in technology-rich environments,” or PS-TRE.

The data included here come from the PS-TRE section of the study. Individuals described in this fact sheet as having “no” digital skills are those without PS-TRE scores; “limited” skills refers to workers with scores below PS-TRE Level 1; “proficient” refers to those who scored at Level 1, and “advanced” combines data from workers who scored at Level 2 or Level 3.

Note: An additional round of U.S. PIAAC data collection was completed in 2017. While 2017 data is not reflected here due to the timing of its release to the public, it is largely consistent with earlier years. Learn more about the 2017 data here: https://nces.ed.gov/surveys/piaac/current_results.asp

ACKNOWLEDGMENTS

National Skills Coalition sincerely appreciates the contributions of our research partner on this project, the American Institutes for Research—Katie Herz, Saida Mamedova, B. Jasmine Park, Emily Pawlowski, Jaleh Soroui, and the rest of the PIAAC team—and thanks them for their thoughtful collaboration and careful analysis. Any remaining errors, of course, are our own.

This research was made possible by generous support from Walmart. We thank them for their support but acknowledge that the findings, conclusions, and recommendations presented in this report are those of National Skills Coalition alone, and do not necessarily reflect the opinions of Walmart.

24 THE NEW LANDSCAPE OF DIGITAL LITERACY 1250 Connecticut Avenue NW, Suite 200, Washington DC 20036 www.nationalskillscoalition.org